Luxury Real Estate Buyer’s Checklist

The home buying process is stressful enough as it is; but when you consider the cost of a luxury home, the stakes become even higher. Are you making the right investment? Formulate a five-step plan and take control of the process from the start line to closing time.

Luxury Home Buying Checklist

Know How to Search — Whether you’re spending $2 million or $50 million, the luxury market differs from that of the standard American residential home. Find a realtor who is well versed in high end home buying and well established in their network. Since many luxury homes are not listed online, be prepared for the initial viewing to take place in person.

Get specific with your wants and needs. If you know you won’t budge on, say, an unobstructed ocean view, your saying so will help narrow the search process and yield only the homes that meet your criteria.

Evaluate Potential Homes — Due to the sheer amount of upgrades and amenities, it’s imperative you take your time with each home to determine if it’s truly right for you. Expect to spend at least 2-4 hours on the property tour to review the nitty gritty details like construction, security, and other homeowner’s insurance factors.

Compare all eligible properties in a spreadsheet. Note pricing, neighborhood details, amenities, security features—anything you feel is most important. A good realtor will help you with comparable homes to prepare you for the future step of making an offer.

Get Finances in Order — Although the luxury real estate market isn’t susceptible to the stringent conditions of subprime lending, lenders will still require all the same documentation—more, in fact. Be prepared with bank statements, W-2s, tax returns, asset statements, etc.

Get approved for financing early as many sellers request to deal solely with qualified buyers. Know the difference between a generic pre-qualify letter and a specific pre-approval letter that states you’re qualified to borrow a specific amount.

Make an Offer — While qualification and luck are the general components of a home sale, the luxury market generally moves slower—so be prepared. The reason for this is because many sellers can literally afford to hang onto their properties until the right person comes along with the right price. Buyer credibility can extend beyond paperwork too.

Ask your realtor for extensive research on comparable properties (all active, pending, and sold states) to establish a baseline for your offer.

Details, Details, Details! — Don’t assume your agent will dot your Is and cross your Ts (although they should). Take accountability for every step of the process from the inspection to the required legal disclosures to the purchase agreement. Consult with tax professionals, financial planners, lenders and, if necessary—attorneys, to help guide you through each step of the process.

Make sure closing costs are completely transparent since you’ll be dealing with large sums of money out of pocket. A good realtor will advise you what costs you must assume as the buyer such as transfer taxes, attorney fees, title insurance, and more.

Buying a luxury home is a transaction in which the buyer takes immeasurable pride. Understand the seller will likely feel the same way and work hard to find a suitable candidate for their prized possession. Home-buying checklists will keep you organized and prepared to find the gorgeous high end home of your dreams.